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Results are in! Emotion is key to achieving customer loyalty.

Forrester conducted a survey of over 110,000 US adult consumers in 2018, to help measure how well a brand’s customer experience strengthens the loyalty of its customers. In this report, the US Customer Experience Index, 2018, they reveal which brands rank the highest when it comes to CX quality.

They found that emotion plays a bigger impact on brand loyalty than effectiveness or ease! This suggests that for companies that want to break away from the pack and deliver differentiated CX, focusing on emotion is a critical place to start.  

emotion key to customer loyalty
Figure 1: Forrester’s CX Index from report, “The US Customer Experience Index 2018”

Positive emotions drive long-term loyalty 

It’s no surprise that when customers feel good about your brand, they stay with you longer, but happiness is not the only emotion that matters. There are 6 feelings that customers say can help boost their loyalty:  

  • Appreciated  
  • Confident  
  • Grateful  
  • Happy  
  • Respected  
  • Valued  

Companies that can continually deliver experiences that make customers feel this way, also have more to gain than simply satisfaction. When customers associate positive emotions with a brand they are more likely to forgive an experience hiccup, refer the brand to others, and in some cases even pay a price premium for better service (How Firms Help Employees Evoke Emotions That deepen Customer Loyalty, Forrester Research, January 2018). This is truly enduring customer loyalty.  

emotion key to customer loyalty
Figure 26: Forrester’s CX Index from report, “The US Customer Experience Index 2018”

Although other aspects of the brand can influence positive customer experiences, customer service employees have the greatest impact in making customers feel the 6 emotions listed above. How the employee feels will result in how the customer feels, hence when employees are unhappy, the customer likely will be unhappy too. That’s why it’s essential to enable employees to deliver positive experiences through the following: 

  • Empowerment: Provide the necessary tools and data to make it easy for employees to create positive emotions. Consider programs or processes to offer critical feedback that focuses on how to improve the customer experience.
  • Training: Help them see opportunities to create positive experiences and ways they can improve how they handle customer inquiries. A consistent and regular training program keeps employees fresh, engaged and current. 

Be aware, negative emotions drive customers away 

It’s no surprise that the more bad experiences a customer has, the less loyal they are to your brand. Somewhat surprisingly though, anger isn’t the only impact on loyalty. Making customers feel annoyed, disappointed or frustrated is equally related to a customer’s negative emotion towards your brand.

Bad customer experiences also hurt revenue and as an example, [easy-tweet tweet=”a multichannel bank leaves $124 million on the table for every 1-point decline in its CX Index score” template=”light”]

Having the right technologies deployed properly, such as these, can reduce customer frustration: 

Tech upgrades to turn negative into positive 

Modernize IVR: 

The good news is negative experiences are avoidable. 

If you haven’t looked at or updated your IVR in a while, this is often a good place to start. Since the IVR is the first brand touchpoint for your customers when they decide to call your company, the experience they have here will dictate how they feel throughout the journey. Some benefits to a modern IVR: 

  • Natural Language: Speech recognition and text to speech realism has vastly improved in recent years.  Customers can experience a completely new paradigm in interactive technology that is more fluid, genuine and comfortable. 
  • Personalization: Reflecting customers specific situation or recent activity such as booking a flight or tracking a package means the customer’s request can be serviced quickly and seamlessly.  
  • Integrated self-service: IVR integrated with CRM can greet a caller by name or send them directly to a dedicated agent if they are a premium customer. This not only reduces negative emotions but also helps to create positive ones by making them feel valued and happy with the experience. 

Omnichannel Desktop: 

Customers want to be able to contact your company using the channel of their choice and they expect a seamless experience from channel to channel. For example, if they start a booking online they want to be able to call in and have the agent see all the activity they did online. This is possible with an omnichannel desktop along with these other benefits: 

  • Efficient resolution: Customers get annoyed when they have to be put on hold or wait too long while an agent searches for information on multiple systems. One agent desktop/screen will help agents see all the information about the customer/order and help them more efficiently.
  • Customer focus: Systems working together properly mean the agent can focus their energy on the customer, not how to get to the right screen.  Active listening and empathy are more prevalent from a relaxed and organized agent.
  • Happier employees = happier customers:  When agents have the right tools to do their job they get frustrated less and enjoy their job more. Happy employees are more likely to provide happy experiences and care more about the customer.  

Don’t stop there 

Understanding the correlation between customer loyalty and positive emotion is good but how can you put the practices in place to make it a reality? Here are 3 steps to get you started:  

  1. Understand the role positive and negative emotions play in CX If you read this blog you’re your halfway there but you can also read this complimentary Forrester report  “The US Customer Experience Index, 2018” to learn even more about the role emotion plays in CX and other 2018 findings. 
  2. Strive for more positive experiences, less negative ones:  Understanding what needs to be done is always easier than implementing it but a good place to start would be to try and ensure you are delivering more positive customer experiences than negative ones. Companies that ranked high on Forrester’s CX Index, on average, are delivering 22 positive experiences to every negative experience (The US Customer Experience Index, 2018, Forrester Research, 2018). Your ratio might not be as good as this yet but the more you improve it, the closer you will be to increasing customer loyalty.
  3.  Learn how your CX quality stacks up to your competitors:  Do you know the CX leaders in your industry and where you rank? Download the US Customer Experience Index 2018 report to see which companies where high and low on the CX index and use the findings from this report to inform your ongoing CX improvement efforts. 

Achieving differentiated CX takes work but there are big gains for companies that make the effort. Just remember how important emotion is and that customers care about how their experience with your company makes them feel.  

 

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About Dave Murashige

David Murashige is a SVP of Customer Engagement. Prior to working at Aria, David worked as an independent consultant in the technology industry. His previous positions include GM of Syniverse’s EIS division and GM of Nortel’s contact center, messaging and self-service Enterprise business. In addition, he has held leadership positions across product, sales and operations teams across the technology sector with Avaya, Wells Fargo Bank and GTE.

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